Document Detail

Title: BMM2006-11 - Impacts of Automation and Integration Technologies on Project and Company Performance
Publication Date: 11/1/2006
Product Type: Benchmarking Report
Status: Reference
Pages: 109
The use of information technologies offers the potential for revolutionary change in the effectiveness with which construction-related activities are executed and the value they add to construction industry stakeholders. This study focuses on that portion of the annual cost burden due to inefficient business process management functions. Sponsored by NIST.
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Abstract

A previous study commissioned by the National Institute of Standards and Technology, NIST GCR 04-867, estimated the annual costs of inadequate interoperability for the U.S. capital facilities industry at $15.8 billion. Approximately 40% of this annual cost burden, or $6 billion, was attributed to inefficient business process management costs. The business process management functions used in NIST GCR 04-867 align with Construction Industry Institute (CII) Benchmarking & Metrics task work functions, enabling an analysis of how key construction industry stakeholders are using automation and integration technologies (A/I Tech) to reduce these inefficiencies at the project and company level. CII analyzed two independent data sets in this study. First, data from 139 CII projects are summarized. Performance metrics and indices quantifying the use of project A/I Tech are discussed and the correlations identified between these metrics and indices are used to measure expected benefits. A complementary second data set from 74 Southeastern United States contractors is used to corroborate findings from the CII data. The results of this study establish that more A/I Tech use helps to improve performance. Schedule performance is strongly associated with increased A/I Tech use. Cost performance is weakly correlated with increased A/I Tech use. The study also indicates increasing deployment of A/I Tech among larger firms and projects.